McNeil International, 10 Eglinton Circle, Edinburgh, Scotland EH12 5DE; Order Denying Permission to Apply For or Use Export Licenses

DEPARTMENT OF COMMERCE

Bureau of Export Administration

McNeil International, 10 Eglinton Circle, Edinburgh, Scotland

EH12 5DE; Order Denying Permission to Apply For or Use Export Licenses

On August 22, 1996, McNeil International was convicted in the

United States District Court for the District of Massachusetts of

violating the International Emergency Economic Powers Act (50 U.S.C.A. Secs.

1701-1706 (1991 & Supp. 1997)) (IEEPA). McNeil International was

convicted of knowingly and willfully exporting, reexporting, diverting,

and transshipping computers and related equipment to Libya, in

violation of the embargo against Libya.

Section 11(h) of the Export Administration Act of 1979, as amended

(50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 1997)) (the Act),\1\

provides that, at the discretion of the Secretary of Commerce,\2\ no

person convicted of violating IEEPA, or certain other provisions of the

United States Code, shall be eligible to apply for or use any license,

including any License Exception, issued pursuant to, or provided by,

the Act or the Export Administration Regulation (61 FR 12734-13041,

March 25, 1996, to be codified at 15 CFR Parts 730-774) (the

Regulations), for a period of up to 10 years from the date of the

conviction. In addition, any license issued pursuant to the Act in

which such a person had any interest at the time of conviction may be

revoked.

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\1\ The Act expired on August 20, 1994. Executive Order 12924 (3

CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of

August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)) and August 14, 1996

(61 FR. 42527, August 15, 1996), continued the Export Administration

Regulations in effect under IEEPA.

\2\ Pursuant to appropriate delegations of authority, the

Director, Office of Exporter Services, in consultation with the

Director, Office of Export Enforcement, exercises the authority

granted to the Secretary by Section 11(h) of the Act.

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Pursuant to Sections 766.25 and 750.8(a) of the Regulations, upon

notification that a person has been convicted of violating IEEPA, the

Director, Office of Exporter Services, in consultation with the

Director, Office of Export Enforcement, shall determine whether to deny

that person permission to apply for or use any license, including any

License Exception, issued pursuant to, or provided by, the Act and the

Regulations, and shall also determine whether to revoke any license

previously issued to such a person.

Having received notice of McNeil International's conviction for

violating IEEPA and following consultations with the Acting Director,

Office of Export Enforcement, I have decided to deny McNeil

International permission to apply for or use any license, including any

License Exception, issued pursuant to, or provided by, the Act and the

Regulations, for a period of 10 years from the date of this conviction.

The 10-year period ends on August 22, 2006. I have also decided to

revoke all licenses issued pursuant to the Act in which McNeil

International had an interest at the time of its conviction.

Accordingly, it is hereby

Ordered

I. Until August 22, 2006, McNeil International, 10 Eglinton Circle,

Edinburgh, Scotland EH12 5DE, may not, directly or indirectly,

participate in any way, in any transaction involving any commodity,

software or technology (hereinafter collectively referred to as

[[Page 33587]]

``item'') exported or to be exported from the United States, that is

subject to the Regulations, or in any other activity subject to the

Regulations, including but not limited to:

A. Applying for, obtaining, or using any license, License

Exception, or export control document;

B. Carrying on negotiations concerning, or ordering, buying,

receiving, using, selling, delivering, storing, disposing of,

forwarding, transporting, financing, or otherwise servicing in any way,

any transaction involving any item exported or to be exported from the

United States that is subject to the Regulations, or in any other

activity subject to the Regulations; or

C. Benefiting in any way from any transaction involving any item

exported or to be exported from the United States that is subject to

the Regulations, or in any other activity subject to the Regulations.

II. No person may directly or indirectly, do any of the following:

A. Export or reexport to or on behalf of the denied person any item

subject to the Regulations;

B. Take any action that facilitates the acquisition or attempted

acquisition by the denied person of the ownership, possession, or

control of any item subject to the Regulations that has been or will be

exported from the United States, including financing or other support

activities related to a transaction whereby the denied person acquires

or attempts to acquire such ownership, possession or control;

C. Take any action to acquire from or to facilitate the acquisition

or attempted acquisition from the denied person of any item subject to

the Regulations that has been exported from the United States;

D. Obtained from the denied person in the United States any item

subject to the Regulations with knowledge or reason to know that the

item will be, or is intended to be, exported from the United States; or

E. Engage in any transaction to service any item subject to the

Regulations that has been or will be exported from the United States

and which is owned, possessed or controlled by the denied person, or

service any item, of whatever origin, that is owned, possessed or

controlled by the denied person if such service involves the use of any

item subject to the Regulations that has been or will be exported from

the United States. For purposes of this paragraph, servicing means

installation, maintenance, repair, modification or testing.

III. After notice and opportunity for comment as provided in

Section 766.23 of the Regulations, any person, firm, corporation, or

business organization related to McNeil International by affiliation,

ownership, control, or position of responsibility in the conduct of

trade or related services may also be subject to the provisions of this

Order.

IV. This Order does not prohibit any export, reexport, or other

transaction subject to the Regulations where the only items involved

that are subject to the Regulations are the foreign-producted direct

product of U.S.-origin technology.

V. This Order is effective immediately and shall remain in effect

until August 22, 2006.

VI. A copy of this Order shall be delivered to McNeil

International. This Order shall be published in the Federal Register.

Dated: June 10, 1997.

Eileen M. Albanese,

Director, Office of Exporter Services.

[FR Doc. 97-16154 Filed 6-19-97; 8:45 am]

BILLING CODE 3510-DT-M